How are tariffs on oil different from tariffs on solar panels and washing machines?
A) Protective tariffs are designed simply to raise money for the government, such as the tariff on oil. Revenue tariffs are designed to raise the price of imported goods to make the prices of domestic products more competitive, such as the tariff on solar panels and washing machines.
B) Revenue tariffs are designed simply to raise money for the government, such as the tariff on solar panels and washing machines. Protective tariffs are designed to raise the price of imported goods to make the prices of domestic products more competitive, such as the tariff on oil.
C) Revenue tariffs are used to deter dumping, such as the tariff on oil. Protective tariffs are used to set import quotas, such as the tariff on solar panels and washing machines.
D) Revenue tariffs are designed simply to raise money for the government, such as the tariff on oil. Protective tariffs are designed to raise the price of imported goods to make the prices of domestic products more competitive, such as the tariff on solar panels and washing machines.
E) Revenue tariffs are used to set the import quota, such as the tariff on oil. Protective tariffs are used to deter dumping, such as the tariff on solar panels and washing machines.
Answer: C) Revenue tariffs are used to deter dumping, such as the tariff on oil. Protective tariffs are used to set import quotas, such as the tariff on solar panels and washing machines.